Ethiopia has been ranked the most expensive country to live in across Africa, according to the newly released Cost of Living Index by Country 2025.
The report places Ethiopia at 53rd globally, with a score of 46.5 on the index—outpacing all other African nations.
Compiled from the world’s largest living cost database, the report highlights that everyday essentials such as food, transport, and restaurant services are more expensive in Ethiopia than in any other African country.
This economic reality is placing growing pressure on households, particularly those with modest or fixed incomes.
The steep rise in food prices has emerged as a key factor in Ethiopia’s high ranking.
Basic grocery costs have soared in recent months, making it increasingly difficult for families to afford weekly essentials.
“Compared to other African countries like Botswana, Mozambique, Ivory coast, Somalia, Cameroon, Mauritius, and Zimbabwe, Ethiopia now leads in overall cost burdens on households,” the report notes.
Although rental costs in Ethiopia remain relatively modest by global standards, the cumulative burden of housing, transportation, and daily expenses has become overwhelming for many residents.
The transport sector, in particular, has seen marked price increases, with internal travel costs now among the highest on the continent.
This surge in living expenses coincides with Ethiopia’s ongoing economic reforms.
In recent months, the government has embarked on a programme of public spending cuts and currency adjustments aimed at stabilising the economy.
However, the reforms have also contributed to inflationary pressures in key sectors.
Despite the government’s push for fiscal discipline, many citizens are feeling the pinch as prices outpace wage growth and employment opportunities remain limited in some areas.
Ethiopia’s position on the 2025 cost of living index underscores the broader challenge facing many African economies: how to manage macroeconomic reforms without disproportionately impacting the most vulnerable populations.
As inflation bites and essentials grow costlier, households across Ethiopia are bracing for tighter budgets in what is now officially the continent’s priciest economy to live in.
